101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2701

 

Introduced , by Rep. Robert Martwick

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/11-74.4-3  from Ch. 24, par. 11-74.4-3

    Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that in order to use a decline in the total equalized assessed value of the proposed redevelopment project area for 3 of the last 5 calendar years as a factor in designating an area "blighted", the municipality must rely on appraisal evidence to show the proposed redevelopment project area's equalized assessed value has declined if the properties within the redevelopment project area had been utilized using the properties' highest and best use during the relevant period. Effective immediately.


LRB101 10353 AWJ 55459 b

 

 

A BILL FOR

 

HB2701LRB101 10353 AWJ 55459 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Section 11-74.4-3 as follows:
 
6    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
7    Sec. 11-74.4-3. Definitions. The following terms, wherever
8used or referred to in this Division 74.4 shall have the
9following respective meanings, unless in any case a different
10meaning clearly appears from the context.
11    (a) For any redevelopment project area that has been
12designated pursuant to this Section by an ordinance adopted
13prior to November 1, 1999 (the effective date of Public Act
1491-478), "blighted area" shall have the meaning set forth in
15this Section prior to that date.
16    On and after November 1, 1999, "blighted area" means any
17improved or vacant area within the boundaries of a
18redevelopment project area located within the territorial
19limits of the municipality where:
20        (1) If improved, industrial, commercial, and
21    residential buildings or improvements are detrimental to
22    the public safety, health, or welfare because of a
23    combination of 5 or more of the following factors, each of

 

 

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1    which is (i) present, with that presence documented, to a
2    meaningful extent so that a municipality may reasonably
3    find that the factor is clearly present within the intent
4    of the Act and (ii) reasonably distributed throughout the
5    improved part of the redevelopment project area:
6            (A) Dilapidation. An advanced state of disrepair
7        or neglect of necessary repairs to the primary
8        structural components of buildings or improvements in
9        such a combination that a documented building
10        condition analysis determines that major repair is
11        required or the defects are so serious and so extensive
12        that the buildings must be removed.
13            (B) Obsolescence. The condition or process of
14        falling into disuse. Structures have become ill-suited
15        for the original use.
16            (C) Deterioration. With respect to buildings,
17        defects including, but not limited to, major defects in
18        the secondary building components such as doors,
19        windows, porches, gutters and downspouts, and fascia.
20        With respect to surface improvements, that the
21        condition of roadways, alleys, curbs, gutters,
22        sidewalks, off-street parking, and surface storage
23        areas evidence deterioration, including, but not
24        limited to, surface cracking, crumbling, potholes,
25        depressions, loose paving material, and weeds
26        protruding through paved surfaces.

 

 

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1            (D) Presence of structures below minimum code
2        standards. All structures that do not meet the
3        standards of zoning, subdivision, building, fire, and
4        other governmental codes applicable to property, but
5        not including housing and property maintenance codes.
6            (E) Illegal use of individual structures. The use
7        of structures in violation of applicable federal,
8        State, or local laws, exclusive of those applicable to
9        the presence of structures below minimum code
10        standards.
11            (F) Excessive vacancies. The presence of buildings
12        that are unoccupied or under-utilized and that
13        represent an adverse influence on the area because of
14        the frequency, extent, or duration of the vacancies.
15            (G) Lack of ventilation, light, or sanitary
16        facilities. The absence of adequate ventilation for
17        light or air circulation in spaces or rooms without
18        windows, or that require the removal of dust, odor,
19        gas, smoke, or other noxious airborne materials.
20        Inadequate natural light and ventilation means the
21        absence of skylights or windows for interior spaces or
22        rooms and improper window sizes and amounts by room
23        area to window area ratios. Inadequate sanitary
24        facilities refers to the absence or inadequacy of
25        garbage storage and enclosure, bathroom facilities,
26        hot water and kitchens, and structural inadequacies

 

 

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1        preventing ingress and egress to and from all rooms and
2        units within a building.
3            (H) Inadequate utilities. Underground and overhead
4        utilities such as storm sewers and storm drainage,
5        sanitary sewers, water lines, and gas, telephone, and
6        electrical services that are shown to be inadequate.
7        Inadequate utilities are those that are: (i) of
8        insufficient capacity to serve the uses in the
9        redevelopment project area, (ii) deteriorated,
10        antiquated, obsolete, or in disrepair, or (iii)
11        lacking within the redevelopment project area.
12            (I) Excessive land coverage and overcrowding of
13        structures and community facilities. The
14        over-intensive use of property and the crowding of
15        buildings and accessory facilities onto a site.
16        Examples of problem conditions warranting the
17        designation of an area as one exhibiting excessive land
18        coverage are: (i) the presence of buildings either
19        improperly situated on parcels or located on parcels of
20        inadequate size and shape in relation to present-day
21        standards of development for health and safety and (ii)
22        the presence of multiple buildings on a single parcel.
23        For there to be a finding of excessive land coverage,
24        these parcels must exhibit one or more of the following
25        conditions: insufficient provision for light and air
26        within or around buildings, increased threat of spread

 

 

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1        of fire due to the close proximity of buildings, lack
2        of adequate or proper access to a public right-of-way,
3        lack of reasonably required off-street parking, or
4        inadequate provision for loading and service.
5            (J) Deleterious land use or layout. The existence
6        of incompatible land-use relationships, buildings
7        occupied by inappropriate mixed-uses, or uses
8        considered to be noxious, offensive, or unsuitable for
9        the surrounding area.
10            (K) Environmental clean-up. The proposed
11        redevelopment project area has incurred Illinois
12        Environmental Protection Agency or United States
13        Environmental Protection Agency remediation costs for,
14        or a study conducted by an independent consultant
15        recognized as having expertise in environmental
16        remediation has determined a need for, the clean-up of
17        hazardous waste, hazardous substances, or underground
18        storage tanks required by State or federal law,
19        provided that the remediation costs constitute a
20        material impediment to the development or
21        redevelopment of the redevelopment project area.
22            (L) Lack of community planning. The proposed
23        redevelopment project area was developed prior to or
24        without the benefit or guidance of a community plan.
25        This means that the development occurred prior to the
26        adoption by the municipality of a comprehensive or

 

 

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1        other community plan or that the plan was not followed
2        at the time of the area's development. This factor must
3        be documented by evidence of adverse or incompatible
4        land-use relationships, inadequate street layout,
5        improper subdivision, parcels of inadequate shape and
6        size to meet contemporary development standards, or
7        other evidence demonstrating an absence of effective
8        community planning.
9            (M) The total equalized assessed value of the
10        proposed redevelopment project area has declined for 3
11        of the last 5 calendar years prior to the year in which
12        the redevelopment project area is designated or is
13        increasing at an annual rate that is less than the
14        balance of the municipality for 3 of the last 5
15        calendar years for which information is available or is
16        increasing at an annual rate that is less than the
17        Consumer Price Index for All Urban Consumers published
18        by the United States Department of Labor or successor
19        agency for 3 of the last 5 calendar years prior to the
20        year in which the redevelopment project area is
21        designated. On and after the effective date of this
22        amendatory Act of the 101st General Assembly, if this
23        item (M) is used as a factor, the municipality must
24        rely on appraisal evidence showing that the proposed
25        redevelopment project area's equalized assessed value
26        has declined for 3 of the last 5 calendar years if the

 

 

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1        properties within the redevelopment project area had
2        been utilized using the properties' highest and best
3        use during the relevant period.
4        (2) If vacant, the sound growth of the redevelopment
5    project area is impaired by a combination of 2 or more of
6    the following factors, each of which is (i) present, with
7    that presence documented, to a meaningful extent so that a
8    municipality may reasonably find that the factor is clearly
9    present within the intent of the Act and (ii) reasonably
10    distributed throughout the vacant part of the
11    redevelopment project area to which it pertains:
12            (A) Obsolete platting of vacant land that results
13        in parcels of limited or narrow size or configurations
14        of parcels of irregular size or shape that would be
15        difficult to develop on a planned basis and in a manner
16        compatible with contemporary standards and
17        requirements, or platting that failed to create
18        rights-of-ways for streets or alleys or that created
19        inadequate right-of-way widths for streets, alleys, or
20        other public rights-of-way or that omitted easements
21        for public utilities.
22            (B) Diversity of ownership of parcels of vacant
23        land sufficient in number to retard or impede the
24        ability to assemble the land for development.
25            (C) Tax and special assessment delinquencies exist
26        or the property has been the subject of tax sales under

 

 

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1        the Property Tax Code within the last 5 years.
2            (D) Deterioration of structures or site
3        improvements in neighboring areas adjacent to the
4        vacant land.
5            (E) The area has incurred Illinois Environmental
6        Protection Agency or United States Environmental
7        Protection Agency remediation costs for, or a study
8        conducted by an independent consultant recognized as
9        having expertise in environmental remediation has
10        determined a need for, the clean-up of hazardous waste,
11        hazardous substances, or underground storage tanks
12        required by State or federal law, provided that the
13        remediation costs constitute a material impediment to
14        the development or redevelopment of the redevelopment
15        project area.
16            (F) The total equalized assessed value of the
17        proposed redevelopment project area has declined for 3
18        of the last 5 calendar years prior to the year in which
19        the redevelopment project area is designated or is
20        increasing at an annual rate that is less than the
21        balance of the municipality for 3 of the last 5
22        calendar years for which information is available or is
23        increasing at an annual rate that is less than the
24        Consumer Price Index for All Urban Consumers published
25        by the United States Department of Labor or successor
26        agency for 3 of the last 5 calendar years prior to the

 

 

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1        year in which the redevelopment project area is
2        designated. On and after the effective date of this
3        amendatory Act of the 101st General Assembly, if this
4        item (F) is used as a factor, the municipality must
5        rely on appraisal evidence showing that the proposed
6        redevelopment project area's equalized assessed value
7        has declined for 3 of the last 5 calendar years if the
8        properties within the redevelopment project area had
9        been utilized using the properties' highest and best
10        use during the relevant period.
11        (3) If vacant, the sound growth of the redevelopment
12    project area is impaired by one of the following factors
13    that (i) is present, with that presence documented, to a
14    meaningful extent so that a municipality may reasonably
15    find that the factor is clearly present within the intent
16    of the Act and (ii) is reasonably distributed throughout
17    the vacant part of the redevelopment project area to which
18    it pertains:
19            (A) The area consists of one or more unused
20        quarries, mines, or strip mine ponds.
21            (B) The area consists of unused rail yards, rail
22        tracks, or railroad rights-of-way.
23            (C) The area, prior to its designation, is subject
24        to (i) chronic flooding that adversely impacts on real
25        property in the area as certified by a registered
26        professional engineer or appropriate regulatory agency

 

 

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1        or (ii) surface water that discharges from all or a
2        part of the area and contributes to flooding within the
3        same watershed, but only if the redevelopment project
4        provides for facilities or improvements to contribute
5        to the alleviation of all or part of the flooding.
6            (D) The area consists of an unused or illegal
7        disposal site containing earth, stone, building
8        debris, or similar materials that were removed from
9        construction, demolition, excavation, or dredge sites.
10            (E) Prior to November 1, 1999, the area is not less
11        than 50 nor more than 100 acres and 75% of which is
12        vacant (notwithstanding that the area has been used for
13        commercial agricultural purposes within 5 years prior
14        to the designation of the redevelopment project area),
15        and the area meets at least one of the factors itemized
16        in paragraph (1) of this subsection, the area has been
17        designated as a town or village center by ordinance or
18        comprehensive plan adopted prior to January 1, 1982,
19        and the area has not been developed for that designated
20        purpose.
21            (F) The area qualified as a blighted improved area
22        immediately prior to becoming vacant, unless there has
23        been substantial private investment in the immediately
24        surrounding area.
25    (b) For any redevelopment project area that has been
26designated pursuant to this Section by an ordinance adopted

 

 

HB2701- 11 -LRB101 10353 AWJ 55459 b

1prior to November 1, 1999 (the effective date of Public Act
291-478), "conservation area" shall have the meaning set forth
3in this Section prior to that date.
4    On and after November 1, 1999, "conservation area" means
5any improved area within the boundaries of a redevelopment
6project area located within the territorial limits of the
7municipality in which 50% or more of the structures in the area
8have an age of 35 years or more. Such an area is not yet a
9blighted area but because of a combination of 3 or more of the
10following factors is detrimental to the public safety, health,
11morals or welfare and such an area may become a blighted area:
12        (1) Dilapidation. An advanced state of disrepair or
13    neglect of necessary repairs to the primary structural
14    components of buildings or improvements in such a
15    combination that a documented building condition analysis
16    determines that major repair is required or the defects are
17    so serious and so extensive that the buildings must be
18    removed.
19        (2) Obsolescence. The condition or process of falling
20    into disuse. Structures have become ill-suited for the
21    original use.
22        (3) Deterioration. With respect to buildings, defects
23    including, but not limited to, major defects in the
24    secondary building components such as doors, windows,
25    porches, gutters and downspouts, and fascia. With respect
26    to surface improvements, that the condition of roadways,

 

 

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1    alleys, curbs, gutters, sidewalks, off-street parking, and
2    surface storage areas evidence deterioration, including,
3    but not limited to, surface cracking, crumbling, potholes,
4    depressions, loose paving material, and weeds protruding
5    through paved surfaces.
6        (4) Presence of structures below minimum code
7    standards. All structures that do not meet the standards of
8    zoning, subdivision, building, fire, and other
9    governmental codes applicable to property, but not
10    including housing and property maintenance codes.
11        (5) Illegal use of individual structures. The use of
12    structures in violation of applicable federal, State, or
13    local laws, exclusive of those applicable to the presence
14    of structures below minimum code standards.
15        (6) Excessive vacancies. The presence of buildings
16    that are unoccupied or under-utilized and that represent an
17    adverse influence on the area because of the frequency,
18    extent, or duration of the vacancies.
19        (7) Lack of ventilation, light, or sanitary
20    facilities. The absence of adequate ventilation for light
21    or air circulation in spaces or rooms without windows, or
22    that require the removal of dust, odor, gas, smoke, or
23    other noxious airborne materials. Inadequate natural light
24    and ventilation means the absence or inadequacy of
25    skylights or windows for interior spaces or rooms and
26    improper window sizes and amounts by room area to window

 

 

HB2701- 13 -LRB101 10353 AWJ 55459 b

1    area ratios. Inadequate sanitary facilities refers to the
2    absence or inadequacy of garbage storage and enclosure,
3    bathroom facilities, hot water and kitchens, and
4    structural inadequacies preventing ingress and egress to
5    and from all rooms and units within a building.
6        (8) Inadequate utilities. Underground and overhead
7    utilities such as storm sewers and storm drainage, sanitary
8    sewers, water lines, and gas, telephone, and electrical
9    services that are shown to be inadequate. Inadequate
10    utilities are those that are: (i) of insufficient capacity
11    to serve the uses in the redevelopment project area, (ii)
12    deteriorated, antiquated, obsolete, or in disrepair, or
13    (iii) lacking within the redevelopment project area.
14        (9) Excessive land coverage and overcrowding of
15    structures and community facilities. The over-intensive
16    use of property and the crowding of buildings and accessory
17    facilities onto a site. Examples of problem conditions
18    warranting the designation of an area as one exhibiting
19    excessive land coverage are: the presence of buildings
20    either improperly situated on parcels or located on parcels
21    of inadequate size and shape in relation to present-day
22    standards of development for health and safety and the
23    presence of multiple buildings on a single parcel. For
24    there to be a finding of excessive land coverage, these
25    parcels must exhibit one or more of the following
26    conditions: insufficient provision for light and air

 

 

HB2701- 14 -LRB101 10353 AWJ 55459 b

1    within or around buildings, increased threat of spread of
2    fire due to the close proximity of buildings, lack of
3    adequate or proper access to a public right-of-way, lack of
4    reasonably required off-street parking, or inadequate
5    provision for loading and service.
6        (10) Deleterious land use or layout. The existence of
7    incompatible land-use relationships, buildings occupied by
8    inappropriate mixed-uses, or uses considered to be
9    noxious, offensive, or unsuitable for the surrounding
10    area.
11        (11) Lack of community planning. The proposed
12    redevelopment project area was developed prior to or
13    without the benefit or guidance of a community plan. This
14    means that the development occurred prior to the adoption
15    by the municipality of a comprehensive or other community
16    plan or that the plan was not followed at the time of the
17    area's development. This factor must be documented by
18    evidence of adverse or incompatible land-use
19    relationships, inadequate street layout, improper
20    subdivision, parcels of inadequate shape and size to meet
21    contemporary development standards, or other evidence
22    demonstrating an absence of effective community planning.
23        (12) The area has incurred Illinois Environmental
24    Protection Agency or United States Environmental
25    Protection Agency remediation costs for, or a study
26    conducted by an independent consultant recognized as

 

 

HB2701- 15 -LRB101 10353 AWJ 55459 b

1    having expertise in environmental remediation has
2    determined a need for, the clean-up of hazardous waste,
3    hazardous substances, or underground storage tanks
4    required by State or federal law, provided that the
5    remediation costs constitute a material impediment to the
6    development or redevelopment of the redevelopment project
7    area.
8        (13) The total equalized assessed value of the proposed
9    redevelopment project area has declined for 3 of the last 5
10    calendar years for which information is available or is
11    increasing at an annual rate that is less than the balance
12    of the municipality for 3 of the last 5 calendar years for
13    which information is available or is increasing at an
14    annual rate that is less than the Consumer Price Index for
15    All Urban Consumers published by the United States
16    Department of Labor or successor agency for 3 of the last 5
17    calendar years for which information is available.
18    (c) "Industrial park" means an area in a blighted or
19conservation area suitable for use by any manufacturing,
20industrial, research or transportation enterprise, of
21facilities to include but not be limited to factories, mills,
22processing plants, assembly plants, packing plants,
23fabricating plants, industrial distribution centers,
24warehouses, repair overhaul or service facilities, freight
25terminals, research facilities, test facilities or railroad
26facilities.

 

 

HB2701- 16 -LRB101 10353 AWJ 55459 b

1    (d) "Industrial park conservation area" means an area
2within the boundaries of a redevelopment project area located
3within the territorial limits of a municipality that is a labor
4surplus municipality or within 1 1/2 miles of the territorial
5limits of a municipality that is a labor surplus municipality
6if the area is annexed to the municipality; which area is zoned
7as industrial no later than at the time the municipality by
8ordinance designates the redevelopment project area, and which
9area includes both vacant land suitable for use as an
10industrial park and a blighted area or conservation area
11contiguous to such vacant land.
12    (e) "Labor surplus municipality" means a municipality in
13which, at any time during the 6 months before the municipality
14by ordinance designates an industrial park conservation area,
15the unemployment rate was over 6% and was also 100% or more of
16the national average unemployment rate for that same time as
17published in the United States Department of Labor Bureau of
18Labor Statistics publication entitled "The Employment
19Situation" or its successor publication. For the purpose of
20this subsection, if unemployment rate statistics for the
21municipality are not available, the unemployment rate in the
22municipality shall be deemed to be the same as the unemployment
23rate in the principal county in which the municipality is
24located.
25    (f) "Municipality" shall mean a city, village,
26incorporated town, or a township that is located in the

 

 

HB2701- 17 -LRB101 10353 AWJ 55459 b

1unincorporated portion of a county with 3 million or more
2inhabitants, if the county adopted an ordinance that approved
3the township's redevelopment plan.
4    (g) "Initial Sales Tax Amounts" means the amount of taxes
5paid under the Retailers' Occupation Tax Act, Use Tax Act,
6Service Use Tax Act, the Service Occupation Tax Act, the
7Municipal Retailers' Occupation Tax Act, and the Municipal
8Service Occupation Tax Act by retailers and servicemen on
9transactions at places located in a State Sales Tax Boundary
10during the calendar year 1985.
11    (g-1) "Revised Initial Sales Tax Amounts" means the amount
12of taxes paid under the Retailers' Occupation Tax Act, Use Tax
13Act, Service Use Tax Act, the Service Occupation Tax Act, the
14Municipal Retailers' Occupation Tax Act, and the Municipal
15Service Occupation Tax Act by retailers and servicemen on
16transactions at places located within the State Sales Tax
17Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
18    (h) "Municipal Sales Tax Increment" means an amount equal
19to the increase in the aggregate amount of taxes paid to a
20municipality from the Local Government Tax Fund arising from
21sales by retailers and servicemen within the redevelopment
22project area or State Sales Tax Boundary, as the case may be,
23for as long as the redevelopment project area or State Sales
24Tax Boundary, as the case may be, exist over and above the
25aggregate amount of taxes as certified by the Illinois
26Department of Revenue and paid under the Municipal Retailers'

 

 

HB2701- 18 -LRB101 10353 AWJ 55459 b

1Occupation Tax Act and the Municipal Service Occupation Tax Act
2by retailers and servicemen, on transactions at places of
3business located in the redevelopment project area or State
4Sales Tax Boundary, as the case may be, during the base year
5which shall be the calendar year immediately prior to the year
6in which the municipality adopted tax increment allocation
7financing. For purposes of computing the aggregate amount of
8such taxes for base years occurring prior to 1985, the
9Department of Revenue shall determine the Initial Sales Tax
10Amounts for such taxes and deduct therefrom an amount equal to
114% of the aggregate amount of taxes per year for each year the
12base year is prior to 1985, but not to exceed a total deduction
13of 12%. The amount so determined shall be known as the
14"Adjusted Initial Sales Tax Amounts". For purposes of
15determining the Municipal Sales Tax Increment, the Department
16of Revenue shall for each period subtract from the amount paid
17to the municipality from the Local Government Tax Fund arising
18from sales by retailers and servicemen on transactions located
19in the redevelopment project area or the State Sales Tax
20Boundary, as the case may be, the certified Initial Sales Tax
21Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
22Initial Sales Tax Amounts for the Municipal Retailers'
23Occupation Tax Act and the Municipal Service Occupation Tax
24Act. For the State Fiscal Year 1989, this calculation shall be
25made by utilizing the calendar year 1987 to determine the tax
26amounts received. For the State Fiscal Year 1990, this

 

 

HB2701- 19 -LRB101 10353 AWJ 55459 b

1calculation shall be made by utilizing the period from January
21, 1988, until September 30, 1988, to determine the tax amounts
3received from retailers and servicemen pursuant to the
4Municipal Retailers' Occupation Tax and the Municipal Service
5Occupation Tax Act, which shall have deducted therefrom
6nine-twelfths of the certified Initial Sales Tax Amounts, the
7Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
8Tax Amounts as appropriate. For the State Fiscal Year 1991,
9this calculation shall be made by utilizing the period from
10October 1, 1988, to June 30, 1989, to determine the tax amounts
11received from retailers and servicemen pursuant to the
12Municipal Retailers' Occupation Tax and the Municipal Service
13Occupation Tax Act which shall have deducted therefrom
14nine-twelfths of the certified Initial Sales Tax Amounts,
15Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
16Tax Amounts as appropriate. For every State Fiscal Year
17thereafter, the applicable period shall be the 12 months
18beginning July 1 and ending June 30 to determine the tax
19amounts received which shall have deducted therefrom the
20certified Initial Sales Tax Amounts, the Adjusted Initial Sales
21Tax Amounts or the Revised Initial Sales Tax Amounts, as the
22case may be.
23    (i) "Net State Sales Tax Increment" means the sum of the
24following: (a) 80% of the first $100,000 of State Sales Tax
25Increment annually generated within a State Sales Tax Boundary;
26(b) 60% of the amount in excess of $100,000 but not exceeding

 

 

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1$500,000 of State Sales Tax Increment annually generated within
2a State Sales Tax Boundary; and (c) 40% of all amounts in
3excess of $500,000 of State Sales Tax Increment annually
4generated within a State Sales Tax Boundary. If, however, a
5municipality established a tax increment financing district in
6a county with a population in excess of 3,000,000 before
7January 1, 1986, and the municipality entered into a contract
8or issued bonds after January 1, 1986, but before December 31,
91986, to finance redevelopment project costs within a State
10Sales Tax Boundary, then the Net State Sales Tax Increment
11means, for the fiscal years beginning July 1, 1990, and July 1,
121991, 100% of the State Sales Tax Increment annually generated
13within a State Sales Tax Boundary; and notwithstanding any
14other provision of this Act, for those fiscal years the
15Department of Revenue shall distribute to those municipalities
16100% of their Net State Sales Tax Increment before any
17distribution to any other municipality and regardless of
18whether or not those other municipalities will receive 100% of
19their Net State Sales Tax Increment. For Fiscal Year 1999, and
20every year thereafter until the year 2007, for any municipality
21that has not entered into a contract or has not issued bonds
22prior to June 1, 1988 to finance redevelopment project costs
23within a State Sales Tax Boundary, the Net State Sales Tax
24Increment shall be calculated as follows: By multiplying the
25Net State Sales Tax Increment by 90% in the State Fiscal Year
261999; 80% in the State Fiscal Year 2000; 70% in the State

 

 

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1Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
2State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
3in the State Fiscal Year 2005; 20% in the State Fiscal Year
42006; and 10% in the State Fiscal Year 2007. No payment shall
5be made for State Fiscal Year 2008 and thereafter.
6    Municipalities that issued bonds in connection with a
7redevelopment project in a redevelopment project area within
8the State Sales Tax Boundary prior to July 29, 1991, or that
9entered into contracts in connection with a redevelopment
10project in a redevelopment project area before June 1, 1988,
11shall continue to receive their proportional share of the
12Illinois Tax Increment Fund distribution until the date on
13which the redevelopment project is completed or terminated. If,
14however, a municipality that issued bonds in connection with a
15redevelopment project in a redevelopment project area within
16the State Sales Tax Boundary prior to July 29, 1991 retires the
17bonds prior to June 30, 2007 or a municipality that entered
18into contracts in connection with a redevelopment project in a
19redevelopment project area before June 1, 1988 completes the
20contracts prior to June 30, 2007, then so long as the
21redevelopment project is not completed or is not terminated,
22the Net State Sales Tax Increment shall be calculated,
23beginning on the date on which the bonds are retired or the
24contracts are completed, as follows: By multiplying the Net
25State Sales Tax Increment by 60% in the State Fiscal Year 2002;
2650% in the State Fiscal Year 2003; 40% in the State Fiscal Year

 

 

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12004; 30% in the State Fiscal Year 2005; 20% in the State
2Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
3payment shall be made for State Fiscal Year 2008 and
4thereafter. Refunding of any bonds issued prior to July 29,
51991, shall not alter the Net State Sales Tax Increment.
6    (j) "State Utility Tax Increment Amount" means an amount
7equal to the aggregate increase in State electric and gas tax
8charges imposed on owners and tenants, other than residential
9customers, of properties located within the redevelopment
10project area under Section 9-222 of the Public Utilities Act,
11over and above the aggregate of such charges as certified by
12the Department of Revenue and paid by owners and tenants, other
13than residential customers, of properties within the
14redevelopment project area during the base year, which shall be
15the calendar year immediately prior to the year of the adoption
16of the ordinance authorizing tax increment allocation
17financing.
18    (k) "Net State Utility Tax Increment" means the sum of the
19following: (a) 80% of the first $100,000 of State Utility Tax
20Increment annually generated by a redevelopment project area;
21(b) 60% of the amount in excess of $100,000 but not exceeding
22$500,000 of the State Utility Tax Increment annually generated
23by a redevelopment project area; and (c) 40% of all amounts in
24excess of $500,000 of State Utility Tax Increment annually
25generated by a redevelopment project area. For the State Fiscal
26Year 1999, and every year thereafter until the year 2007, for

 

 

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1any municipality that has not entered into a contract or has
2not issued bonds prior to June 1, 1988 to finance redevelopment
3project costs within a redevelopment project area, the Net
4State Utility Tax Increment shall be calculated as follows: By
5multiplying the Net State Utility Tax Increment by 90% in the
6State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
7in the State Fiscal Year 2001; 60% in the State Fiscal Year
82002; 50% in the State Fiscal Year 2003; 40% in the State
9Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
10State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
11No payment shall be made for the State Fiscal Year 2008 and
12thereafter.
13    Municipalities that issue bonds in connection with the
14redevelopment project during the period from June 1, 1988 until
153 years after the effective date of this Amendatory Act of 1988
16shall receive the Net State Utility Tax Increment, subject to
17appropriation, for 15 State Fiscal Years after the issuance of
18such bonds. For the 16th through the 20th State Fiscal Years
19after issuance of the bonds, the Net State Utility Tax
20Increment shall be calculated as follows: By multiplying the
21Net State Utility Tax Increment by 90% in year 16; 80% in year
2217; 70% in year 18; 60% in year 19; and 50% in year 20.
23Refunding of any bonds issued prior to June 1, 1988, shall not
24alter the revised Net State Utility Tax Increment payments set
25forth above.
26    (l) "Obligations" mean bonds, loans, debentures, notes,

 

 

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1special certificates or other evidence of indebtedness issued
2by the municipality to carry out a redevelopment project or to
3refund outstanding obligations.
4    (m) "Payment in lieu of taxes" means those estimated tax
5revenues from real property in a redevelopment project area
6derived from real property that has been acquired by a
7municipality which according to the redevelopment project or
8plan is to be used for a private use which taxing districts
9would have received had a municipality not acquired the real
10property and adopted tax increment allocation financing and
11which would result from levies made after the time of the
12adoption of tax increment allocation financing to the time the
13current equalized value of real property in the redevelopment
14project area exceeds the total initial equalized value of real
15property in said area.
16    (n) "Redevelopment plan" means the comprehensive program
17of the municipality for development or redevelopment intended
18by the payment of redevelopment project costs to reduce or
19eliminate those conditions the existence of which qualified the
20redevelopment project area as a "blighted area" or
21"conservation area" or combination thereof or "industrial park
22conservation area," and thereby to enhance the tax bases of the
23taxing districts which extend into the redevelopment project
24area, provided that, with respect to redevelopment project
25areas described in subsections (p-1) and (p-2), "redevelopment
26plan" means the comprehensive program of the affected

 

 

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1municipality for the development of qualifying transit
2facilities. On and after November 1, 1999 (the effective date
3of Public Act 91-478), no redevelopment plan may be approved or
4amended that includes the development of vacant land (i) with a
5golf course and related clubhouse and other facilities or (ii)
6designated by federal, State, county, or municipal government
7as public land for outdoor recreational activities or for
8nature preserves and used for that purpose within 5 years prior
9to the adoption of the redevelopment plan. For the purpose of
10this subsection, "recreational activities" is limited to mean
11camping and hunting. Each redevelopment plan shall set forth in
12writing the program to be undertaken to accomplish the
13objectives and shall include but not be limited to:
14        (A) an itemized list of estimated redevelopment
15    project costs;
16        (B) evidence indicating that the redevelopment project
17    area on the whole has not been subject to growth and
18    development through investment by private enterprise,
19    provided that such evidence shall not be required for any
20    redevelopment project area located within a transit
21    facility improvement area established pursuant to Section
22    11-74.4-3.3;
23        (C) an assessment of any financial impact of the
24    redevelopment project area on or any increased demand for
25    services from any taxing district affected by the plan and
26    any program to address such financial impact or increased

 

 

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1    demand;
2        (D) the sources of funds to pay costs;
3        (E) the nature and term of the obligations to be
4    issued;
5        (F) the most recent equalized assessed valuation of the
6    redevelopment project area;
7        (G) an estimate as to the equalized assessed valuation
8    after redevelopment and the general land uses to apply in
9    the redevelopment project area;
10        (H) a commitment to fair employment practices and an
11    affirmative action plan;
12        (I) if it concerns an industrial park conservation
13    area, the plan shall also include a general description of
14    any proposed developer, user and tenant of any property, a
15    description of the type, structure and general character of
16    the facilities to be developed, a description of the type,
17    class and number of new employees to be employed in the
18    operation of the facilities to be developed; and
19        (J) if property is to be annexed to the municipality,
20    the plan shall include the terms of the annexation
21    agreement.
22    The provisions of items (B) and (C) of this subsection (n)
23shall not apply to a municipality that before March 14, 1994
24(the effective date of Public Act 88-537) had fixed, either by
25its corporate authorities or by a commission designated under
26subsection (k) of Section 11-74.4-4, a time and place for a

 

 

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1public hearing as required by subsection (a) of Section
211-74.4-5. No redevelopment plan shall be adopted unless a
3municipality complies with all of the following requirements:
4        (1) The municipality finds that the redevelopment
5    project area on the whole has not been subject to growth
6    and development through investment by private enterprise
7    and would not reasonably be anticipated to be developed
8    without the adoption of the redevelopment plan, provided,
9    however, that such a finding shall not be required with
10    respect to any redevelopment project area located within a
11    transit facility improvement area established pursuant to
12    Section 11-74.4-3.3.
13        (2) The municipality finds that the redevelopment plan
14    and project conform to the comprehensive plan for the
15    development of the municipality as a whole, or, for
16    municipalities with a population of 100,000 or more,
17    regardless of when the redevelopment plan and project was
18    adopted, the redevelopment plan and project either: (i)
19    conforms to the strategic economic development or
20    redevelopment plan issued by the designated planning
21    authority of the municipality, or (ii) includes land uses
22    that have been approved by the planning commission of the
23    municipality.
24        (3) The redevelopment plan establishes the estimated
25    dates of completion of the redevelopment project and
26    retirement of obligations issued to finance redevelopment

 

 

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1    project costs. Those dates may not be later than the dates
2    set forth under Section 11-74.4-3.5.
3        A municipality may by municipal ordinance amend an
4    existing redevelopment plan to conform to this paragraph
5    (3) as amended by Public Act 91-478, which municipal
6    ordinance may be adopted without further hearing or notice
7    and without complying with the procedures provided in this
8    Act pertaining to an amendment to or the initial approval
9    of a redevelopment plan and project and designation of a
10    redevelopment project area.
11        (3.5) The municipality finds, in the case of an
12    industrial park conservation area, also that the
13    municipality is a labor surplus municipality and that the
14    implementation of the redevelopment plan will reduce
15    unemployment, create new jobs and by the provision of new
16    facilities enhance the tax base of the taxing districts
17    that extend into the redevelopment project area.
18        (4) If any incremental revenues are being utilized
19    under Section 8(a)(1) or 8(a)(2) of this Act in
20    redevelopment project areas approved by ordinance after
21    January 1, 1986, the municipality finds: (a) that the
22    redevelopment project area would not reasonably be
23    developed without the use of such incremental revenues, and
24    (b) that such incremental revenues will be exclusively
25    utilized for the development of the redevelopment project
26    area.

 

 

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1        (5) If: (a) the redevelopment plan will not result in
2    displacement of residents from 10 or more inhabited
3    residential units, and the municipality certifies in the
4    plan that such displacement will not result from the plan;
5    or (b) the redevelopment plan is for a redevelopment
6    project area located within a transit facility improvement
7    area established pursuant to Section 11-74.4-3.3, and the
8    applicable project is subject to the process for evaluation
9    of environmental effects under the National Environmental
10    Policy Act of 1969, 42 U.S.C. 4321 et seq., then a housing
11    impact study need not be performed. If, however, the
12    redevelopment plan would result in the displacement of
13    residents from 10 or more inhabited residential units, or
14    if the redevelopment project area contains 75 or more
15    inhabited residential units and no certification is made,
16    then the municipality shall prepare, as part of the
17    separate feasibility report required by subsection (a) of
18    Section 11-74.4-5, a housing impact study.
19        Part I of the housing impact study shall include (i)
20    data as to whether the residential units are single family
21    or multi-family units, (ii) the number and type of rooms
22    within the units, if that information is available, (iii)
23    whether the units are inhabited or uninhabited, as
24    determined not less than 45 days before the date that the
25    ordinance or resolution required by subsection (a) of
26    Section 11-74.4-5 is passed, and (iv) data as to the racial

 

 

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1    and ethnic composition of the residents in the inhabited
2    residential units. The data requirement as to the racial
3    and ethnic composition of the residents in the inhabited
4    residential units shall be deemed to be fully satisfied by
5    data from the most recent federal census.
6        Part II of the housing impact study shall identify the
7    inhabited residential units in the proposed redevelopment
8    project area that are to be or may be removed. If inhabited
9    residential units are to be removed, then the housing
10    impact study shall identify (i) the number and location of
11    those units that will or may be removed, (ii) the
12    municipality's plans for relocation assistance for those
13    residents in the proposed redevelopment project area whose
14    residences are to be removed, (iii) the availability of
15    replacement housing for those residents whose residences
16    are to be removed, and shall identify the type, location,
17    and cost of the housing, and (iv) the type and extent of
18    relocation assistance to be provided.
19        (6) On and after November 1, 1999, the housing impact
20    study required by paragraph (5) shall be incorporated in
21    the redevelopment plan for the redevelopment project area.
22        (7) On and after November 1, 1999, no redevelopment
23    plan shall be adopted, nor an existing plan amended, nor
24    shall residential housing that is occupied by households of
25    low-income and very low-income persons in currently
26    existing redevelopment project areas be removed after

 

 

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1    November 1, 1999 unless the redevelopment plan provides,
2    with respect to inhabited housing units that are to be
3    removed for households of low-income and very low-income
4    persons, affordable housing and relocation assistance not
5    less than that which would be provided under the federal
6    Uniform Relocation Assistance and Real Property
7    Acquisition Policies Act of 1970 and the regulations under
8    that Act, including the eligibility criteria. Affordable
9    housing may be either existing or newly constructed
10    housing. For purposes of this paragraph (7), "low-income
11    households", "very low-income households", and "affordable
12    housing" have the meanings set forth in the Illinois
13    Affordable Housing Act. The municipality shall make a good
14    faith effort to ensure that this affordable housing is
15    located in or near the redevelopment project area within
16    the municipality.
17        (8) On and after November 1, 1999, if, after the
18    adoption of the redevelopment plan for the redevelopment
19    project area, any municipality desires to amend its
20    redevelopment plan to remove more inhabited residential
21    units than specified in its original redevelopment plan,
22    that change shall be made in accordance with the procedures
23    in subsection (c) of Section 11-74.4-5.
24        (9) For redevelopment project areas designated prior
25    to November 1, 1999, the redevelopment plan may be amended
26    without further joint review board meeting or hearing,

 

 

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1    provided that the municipality shall give notice of any
2    such changes by mail to each affected taxing district and
3    registrant on the interested party registry, to authorize
4    the municipality to expend tax increment revenues for
5    redevelopment project costs defined by paragraphs (5) and
6    (7.5), subparagraphs (E) and (F) of paragraph (11), and
7    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
8    long as the changes do not increase the total estimated
9    redevelopment project costs set out in the redevelopment
10    plan by more than 5% after adjustment for inflation from
11    the date the plan was adopted.
12    (o) "Redevelopment project" means any public and private
13development project in furtherance of the objectives of a
14redevelopment plan. On and after November 1, 1999 (the
15effective date of Public Act 91-478), no redevelopment plan may
16be approved or amended that includes the development of vacant
17land (i) with a golf course and related clubhouse and other
18facilities or (ii) designated by federal, State, county, or
19municipal government as public land for outdoor recreational
20activities or for nature preserves and used for that purpose
21within 5 years prior to the adoption of the redevelopment plan.
22For the purpose of this subsection, "recreational activities"
23is limited to mean camping and hunting.
24    (p) "Redevelopment project area" means an area designated
25by the municipality, which is not less in the aggregate than 1
261/2 acres and in respect to which the municipality has made a

 

 

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1finding that there exist conditions which cause the area to be
2classified as an industrial park conservation area or a
3blighted area or a conservation area, or a combination of both
4blighted areas and conservation areas.
5    (p-1) Notwithstanding any provision of this Act to the
6contrary, on and after August 25, 2009 (the effective date of
7Public Act 96-680), a redevelopment project area may include
8areas within a one-half mile radius of an existing or proposed
9Regional Transportation Authority Suburban Transit Access
10Route (STAR Line) station without a finding that the area is
11classified as an industrial park conservation area, a blighted
12area, a conservation area, or a combination thereof, but only
13if the municipality receives unanimous consent from the joint
14review board created to review the proposed redevelopment
15project area.
16    (p-2) Notwithstanding any provision of this Act to the
17contrary, on and after the effective date of this amendatory
18Act of the 99th General Assembly, a redevelopment project area
19may include areas within a transit facility improvement area
20that has been established pursuant to Section 11-74.4-3.3
21without a finding that the area is classified as an industrial
22park conservation area, a blighted area, a conservation area,
23or any combination thereof.
24    (q) "Redevelopment project costs", except for
25redevelopment project areas created pursuant to subsection
26(p-1) or (p-2), means and includes the sum total of all

 

 

HB2701- 34 -LRB101 10353 AWJ 55459 b

1reasonable or necessary costs incurred or estimated to be
2incurred, and any such costs incidental to a redevelopment plan
3and a redevelopment project. Such costs include, without
4limitation, the following:
5        (1) Costs of studies, surveys, development of plans,
6    and specifications, implementation and administration of
7    the redevelopment plan including but not limited to staff
8    and professional service costs for architectural,
9    engineering, legal, financial, planning or other services,
10    provided however that no charges for professional services
11    may be based on a percentage of the tax increment
12    collected; except that on and after November 1, 1999 (the
13    effective date of Public Act 91-478), no contracts for
14    professional services, excluding architectural and
15    engineering services, may be entered into if the terms of
16    the contract extend beyond a period of 3 years. In
17    addition, "redevelopment project costs" shall not include
18    lobbying expenses. After consultation with the
19    municipality, each tax increment consultant or advisor to a
20    municipality that plans to designate or has designated a
21    redevelopment project area shall inform the municipality
22    in writing of any contracts that the consultant or advisor
23    has entered into with entities or individuals that have
24    received, or are receiving, payments financed by tax
25    increment revenues produced by the redevelopment project
26    area with respect to which the consultant or advisor has

 

 

HB2701- 35 -LRB101 10353 AWJ 55459 b

1    performed, or will be performing, service for the
2    municipality. This requirement shall be satisfied by the
3    consultant or advisor before the commencement of services
4    for the municipality and thereafter whenever any other
5    contracts with those individuals or entities are executed
6    by the consultant or advisor;
7        (1.5) After July 1, 1999, annual administrative costs
8    shall not include general overhead or administrative costs
9    of the municipality that would still have been incurred by
10    the municipality if the municipality had not designated a
11    redevelopment project area or approved a redevelopment
12    plan;
13        (1.6) The cost of marketing sites within the
14    redevelopment project area to prospective businesses,
15    developers, and investors;
16        (2) Property assembly costs, including but not limited
17    to acquisition of land and other property, real or
18    personal, or rights or interests therein, demolition of
19    buildings, site preparation, site improvements that serve
20    as an engineered barrier addressing ground level or below
21    ground environmental contamination, including, but not
22    limited to parking lots and other concrete or asphalt
23    barriers, and the clearing and grading of land;
24        (3) Costs of rehabilitation, reconstruction or repair
25    or remodeling of existing public or private buildings,
26    fixtures, and leasehold improvements; and the cost of

 

 

HB2701- 36 -LRB101 10353 AWJ 55459 b

1    replacing an existing public building if pursuant to the
2    implementation of a redevelopment project the existing
3    public building is to be demolished to use the site for
4    private investment or devoted to a different use requiring
5    private investment; including any direct or indirect costs
6    relating to Green Globes or LEED certified construction
7    elements or construction elements with an equivalent
8    certification;
9        (4) Costs of the construction of public works or
10    improvements, including any direct or indirect costs
11    relating to Green Globes or LEED certified construction
12    elements or construction elements with an equivalent
13    certification, except that on and after November 1, 1999,
14    redevelopment project costs shall not include the cost of
15    constructing a new municipal public building principally
16    used to provide offices, storage space, or conference
17    facilities or vehicle storage, maintenance, or repair for
18    administrative, public safety, or public works personnel
19    and that is not intended to replace an existing public
20    building as provided under paragraph (3) of subsection (q)
21    of Section 11-74.4-3 unless either (i) the construction of
22    the new municipal building implements a redevelopment
23    project that was included in a redevelopment plan that was
24    adopted by the municipality prior to November 1, 1999, (ii)
25    the municipality makes a reasonable determination in the
26    redevelopment plan, supported by information that provides

 

 

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1    the basis for that determination, that the new municipal
2    building is required to meet an increase in the need for
3    public safety purposes anticipated to result from the
4    implementation of the redevelopment plan, or (iii) the new
5    municipal public building is for the storage, maintenance,
6    or repair of transit vehicles and is located in a transit
7    facility improvement area that has been established
8    pursuant to Section 11-74.4-3.3;
9        (5) Costs of job training and retraining projects,
10    including the cost of "welfare to work" programs
11    implemented by businesses located within the redevelopment
12    project area;
13        (6) Financing costs, including but not limited to all
14    necessary and incidental expenses related to the issuance
15    of obligations and which may include payment of interest on
16    any obligations issued hereunder including interest
17    accruing during the estimated period of construction of any
18    redevelopment project for which such obligations are
19    issued and for not exceeding 36 months thereafter and
20    including reasonable reserves related thereto;
21        (7) To the extent the municipality by written agreement
22    accepts and approves the same, all or a portion of a taxing
23    district's capital costs resulting from the redevelopment
24    project necessarily incurred or to be incurred within a
25    taxing district in furtherance of the objectives of the
26    redevelopment plan and project;

 

 

HB2701- 38 -LRB101 10353 AWJ 55459 b

1        (7.5) For redevelopment project areas designated (or
2    redevelopment project areas amended to add or increase the
3    number of tax-increment-financing assisted housing units)
4    on or after November 1, 1999, an elementary, secondary, or
5    unit school district's increased costs attributable to
6    assisted housing units located within the redevelopment
7    project area for which the developer or redeveloper
8    receives financial assistance through an agreement with
9    the municipality or because the municipality incurs the
10    cost of necessary infrastructure improvements within the
11    boundaries of the assisted housing sites necessary for the
12    completion of that housing as authorized by this Act, and
13    which costs shall be paid by the municipality from the
14    Special Tax Allocation Fund when the tax increment revenue
15    is received as a result of the assisted housing units and
16    shall be calculated annually as follows:
17            (A) for foundation districts, excluding any school
18        district in a municipality with a population in excess
19        of 1,000,000, by multiplying the district's increase
20        in attendance resulting from the net increase in new
21        students enrolled in that school district who reside in
22        housing units within the redevelopment project area
23        that have received financial assistance through an
24        agreement with the municipality or because the
25        municipality incurs the cost of necessary
26        infrastructure improvements within the boundaries of

 

 

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1        the housing sites necessary for the completion of that
2        housing as authorized by this Act since the designation
3        of the redevelopment project area by the most recently
4        available per capita tuition cost as defined in Section
5        10-20.12a of the School Code less any increase in
6        general State aid as defined in Section 18-8.05 of the
7        School Code or evidence-based funding as defined in
8        Section 18-8.15 of the School Code attributable to
9        these added new students subject to the following
10        annual limitations:
11                (i) for unit school districts with a district
12            average 1995-96 Per Capita Tuition Charge of less
13            than $5,900, no more than 25% of the total amount
14            of property tax increment revenue produced by
15            those housing units that have received tax
16            increment finance assistance under this Act;
17                (ii) for elementary school districts with a
18            district average 1995-96 Per Capita Tuition Charge
19            of less than $5,900, no more than 17% of the total
20            amount of property tax increment revenue produced
21            by those housing units that have received tax
22            increment finance assistance under this Act; and
23                (iii) for secondary school districts with a
24            district average 1995-96 Per Capita Tuition Charge
25            of less than $5,900, no more than 8% of the total
26            amount of property tax increment revenue produced

 

 

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1            by those housing units that have received tax
2            increment finance assistance under this Act.
3            (B) For alternate method districts, flat grant
4        districts, and foundation districts with a district
5        average 1995-96 Per Capita Tuition Charge equal to or
6        more than $5,900, excluding any school district with a
7        population in excess of 1,000,000, by multiplying the
8        district's increase in attendance resulting from the
9        net increase in new students enrolled in that school
10        district who reside in housing units within the
11        redevelopment project area that have received
12        financial assistance through an agreement with the
13        municipality or because the municipality incurs the
14        cost of necessary infrastructure improvements within
15        the boundaries of the housing sites necessary for the
16        completion of that housing as authorized by this Act
17        since the designation of the redevelopment project
18        area by the most recently available per capita tuition
19        cost as defined in Section 10-20.12a of the School Code
20        less any increase in general state aid as defined in
21        Section 18-8.05 of the School Code or evidence-based
22        funding as defined in Section 18-8.15 of the School
23        Code attributable to these added new students subject
24        to the following annual limitations:
25                (i) for unit school districts, no more than 40%
26            of the total amount of property tax increment

 

 

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1            revenue produced by those housing units that have
2            received tax increment finance assistance under
3            this Act;
4                (ii) for elementary school districts, no more
5            than 27% of the total amount of property tax
6            increment revenue produced by those housing units
7            that have received tax increment finance
8            assistance under this Act; and
9                (iii) for secondary school districts, no more
10            than 13% of the total amount of property tax
11            increment revenue produced by those housing units
12            that have received tax increment finance
13            assistance under this Act.
14            (C) For any school district in a municipality with
15        a population in excess of 1,000,000, the following
16        restrictions shall apply to the reimbursement of
17        increased costs under this paragraph (7.5):
18                (i) no increased costs shall be reimbursed
19            unless the school district certifies that each of
20            the schools affected by the assisted housing
21            project is at or over its student capacity;
22                (ii) the amount reimbursable shall be reduced
23            by the value of any land donated to the school
24            district by the municipality or developer, and by
25            the value of any physical improvements made to the
26            schools by the municipality or developer; and

 

 

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1                (iii) the amount reimbursed may not affect
2            amounts otherwise obligated by the terms of any
3            bonds, notes, or other funding instruments, or the
4            terms of any redevelopment agreement.
5        Any school district seeking payment under this
6        paragraph (7.5) shall, after July 1 and before
7        September 30 of each year, provide the municipality
8        with reasonable evidence to support its claim for
9        reimbursement before the municipality shall be
10        required to approve or make the payment to the school
11        district. If the school district fails to provide the
12        information during this period in any year, it shall
13        forfeit any claim to reimbursement for that year.
14        School districts may adopt a resolution waiving the
15        right to all or a portion of the reimbursement
16        otherwise required by this paragraph (7.5). By
17        acceptance of this reimbursement the school district
18        waives the right to directly or indirectly set aside,
19        modify, or contest in any manner the establishment of
20        the redevelopment project area or projects;
21        (7.7) For redevelopment project areas designated (or
22    redevelopment project areas amended to add or increase the
23    number of tax-increment-financing assisted housing units)
24    on or after January 1, 2005 (the effective date of Public
25    Act 93-961), a public library district's increased costs
26    attributable to assisted housing units located within the

 

 

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1    redevelopment project area for which the developer or
2    redeveloper receives financial assistance through an
3    agreement with the municipality or because the
4    municipality incurs the cost of necessary infrastructure
5    improvements within the boundaries of the assisted housing
6    sites necessary for the completion of that housing as
7    authorized by this Act shall be paid to the library
8    district by the municipality from the Special Tax
9    Allocation Fund when the tax increment revenue is received
10    as a result of the assisted housing units. This paragraph
11    (7.7) applies only if (i) the library district is located
12    in a county that is subject to the Property Tax Extension
13    Limitation Law or (ii) the library district is not located
14    in a county that is subject to the Property Tax Extension
15    Limitation Law but the district is prohibited by any other
16    law from increasing its tax levy rate without a prior voter
17    referendum.
18        The amount paid to a library district under this
19    paragraph (7.7) shall be calculated by multiplying (i) the
20    net increase in the number of persons eligible to obtain a
21    library card in that district who reside in housing units
22    within the redevelopment project area that have received
23    financial assistance through an agreement with the
24    municipality or because the municipality incurs the cost of
25    necessary infrastructure improvements within the
26    boundaries of the housing sites necessary for the

 

 

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1    completion of that housing as authorized by this Act since
2    the designation of the redevelopment project area by (ii)
3    the per-patron cost of providing library services so long
4    as it does not exceed $120. The per-patron cost shall be
5    the Total Operating Expenditures Per Capita for the library
6    in the previous fiscal year. The municipality may deduct
7    from the amount that it must pay to a library district
8    under this paragraph any amount that it has voluntarily
9    paid to the library district from the tax increment
10    revenue. The amount paid to a library district under this
11    paragraph (7.7) shall be no more than 2% of the amount
12    produced by the assisted housing units and deposited into
13    the Special Tax Allocation Fund.
14        A library district is not eligible for any payment
15    under this paragraph (7.7) unless the library district has
16    experienced an increase in the number of patrons from the
17    municipality that created the tax-increment-financing
18    district since the designation of the redevelopment
19    project area.
20        Any library district seeking payment under this
21    paragraph (7.7) shall, after July 1 and before September 30
22    of each year, provide the municipality with convincing
23    evidence to support its claim for reimbursement before the
24    municipality shall be required to approve or make the
25    payment to the library district. If the library district
26    fails to provide the information during this period in any

 

 

HB2701- 45 -LRB101 10353 AWJ 55459 b

1    year, it shall forfeit any claim to reimbursement for that
2    year. Library districts may adopt a resolution waiving the
3    right to all or a portion of the reimbursement otherwise
4    required by this paragraph (7.7). By acceptance of such
5    reimbursement, the library district shall forfeit any
6    right to directly or indirectly set aside, modify, or
7    contest in any manner whatsoever the establishment of the
8    redevelopment project area or projects;
9        (8) Relocation costs to the extent that a municipality
10    determines that relocation costs shall be paid or is
11    required to make payment of relocation costs by federal or
12    State law or in order to satisfy subparagraph (7) of
13    subsection (n);
14        (9) Payment in lieu of taxes;
15        (10) Costs of job training, retraining, advanced
16    vocational education or career education, including but
17    not limited to courses in occupational, semi-technical or
18    technical fields leading directly to employment, incurred
19    by one or more taxing districts, provided that such costs
20    (i) are related to the establishment and maintenance of
21    additional job training, advanced vocational education or
22    career education programs for persons employed or to be
23    employed by employers located in a redevelopment project
24    area; and (ii) when incurred by a taxing district or taxing
25    districts other than the municipality, are set forth in a
26    written agreement by or among the municipality and the

 

 

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1    taxing district or taxing districts, which agreement
2    describes the program to be undertaken, including but not
3    limited to the number of employees to be trained, a
4    description of the training and services to be provided,
5    the number and type of positions available or to be
6    available, itemized costs of the program and sources of
7    funds to pay for the same, and the term of the agreement.
8    Such costs include, specifically, the payment by community
9    college districts of costs pursuant to Sections 3-37, 3-38,
10    3-40 and 3-40.1 of the Public Community College Act and by
11    school districts of costs pursuant to Sections 10-22.20a
12    and 10-23.3a of the School Code;
13        (11) Interest cost incurred by a redeveloper related to
14    the construction, renovation or rehabilitation of a
15    redevelopment project provided that:
16            (A) such costs are to be paid directly from the
17        special tax allocation fund established pursuant to
18        this Act;
19            (B) such payments in any one year may not exceed
20        30% of the annual interest costs incurred by the
21        redeveloper with regard to the redevelopment project
22        during that year;
23            (C) if there are not sufficient funds available in
24        the special tax allocation fund to make the payment
25        pursuant to this paragraph (11) then the amounts so due
26        shall accrue and be payable when sufficient funds are

 

 

HB2701- 47 -LRB101 10353 AWJ 55459 b

1        available in the special tax allocation fund;
2            (D) the total of such interest payments paid
3        pursuant to this Act may not exceed 30% of the total
4        (i) cost paid or incurred by the redeveloper for the
5        redevelopment project plus (ii) redevelopment project
6        costs excluding any property assembly costs and any
7        relocation costs incurred by a municipality pursuant
8        to this Act;
9            (E) the cost limits set forth in subparagraphs (B)
10        and (D) of paragraph (11) shall be modified for the
11        financing of rehabilitated or new housing units for
12        low-income households and very low-income households,
13        as defined in Section 3 of the Illinois Affordable
14        Housing Act. The percentage of 75% shall be substituted
15        for 30% in subparagraphs (B) and (D) of paragraph (11);
16        and
17            (F) instead of the eligible costs provided by
18        subparagraphs (B) and (D) of paragraph (11), as
19        modified by this subparagraph, and notwithstanding any
20        other provisions of this Act to the contrary, the
21        municipality may pay from tax increment revenues up to
22        50% of the cost of construction of new housing units to
23        be occupied by low-income households and very
24        low-income households as defined in Section 3 of the
25        Illinois Affordable Housing Act. The cost of
26        construction of those units may be derived from the

 

 

HB2701- 48 -LRB101 10353 AWJ 55459 b

1        proceeds of bonds issued by the municipality under this
2        Act or other constitutional or statutory authority or
3        from other sources of municipal revenue that may be
4        reimbursed from tax increment revenues or the proceeds
5        of bonds issued to finance the construction of that
6        housing.
7            The eligible costs provided under this
8        subparagraph (F) of paragraph (11) shall be an eligible
9        cost for the construction, renovation, and
10        rehabilitation of all low and very low-income housing
11        units, as defined in Section 3 of the Illinois
12        Affordable Housing Act, within the redevelopment
13        project area. If the low and very low-income units are
14        part of a residential redevelopment project that
15        includes units not affordable to low and very
16        low-income households, only the low and very
17        low-income units shall be eligible for benefits under
18        this subparagraph (F) of paragraph (11). The standards
19        for maintaining the occupancy by low-income households
20        and very low-income households, as defined in Section 3
21        of the Illinois Affordable Housing Act, of those units
22        constructed with eligible costs made available under
23        the provisions of this subparagraph (F) of paragraph
24        (11) shall be established by guidelines adopted by the
25        municipality. The responsibility for annually
26        documenting the initial occupancy of the units by

 

 

HB2701- 49 -LRB101 10353 AWJ 55459 b

1        low-income households and very low-income households,
2        as defined in Section 3 of the Illinois Affordable
3        Housing Act, shall be that of the then current owner of
4        the property. For ownership units, the guidelines will
5        provide, at a minimum, for a reasonable recapture of
6        funds, or other appropriate methods designed to
7        preserve the original affordability of the ownership
8        units. For rental units, the guidelines will provide,
9        at a minimum, for the affordability of rent to low and
10        very low-income households. As units become available,
11        they shall be rented to income-eligible tenants. The
12        municipality may modify these guidelines from time to
13        time; the guidelines, however, shall be in effect for
14        as long as tax increment revenue is being used to pay
15        for costs associated with the units or for the
16        retirement of bonds issued to finance the units or for
17        the life of the redevelopment project area, whichever
18        is later;
19        (11.5) If the redevelopment project area is located
20    within a municipality with a population of more than
21    100,000, the cost of day care services for children of
22    employees from low-income families working for businesses
23    located within the redevelopment project area and all or a
24    portion of the cost of operation of day care centers
25    established by redevelopment project area businesses to
26    serve employees from low-income families working in

 

 

HB2701- 50 -LRB101 10353 AWJ 55459 b

1    businesses located in the redevelopment project area. For
2    the purposes of this paragraph, "low-income families"
3    means families whose annual income does not exceed 80% of
4    the municipal, county, or regional median income, adjusted
5    for family size, as the annual income and municipal,
6    county, or regional median income are determined from time
7    to time by the United States Department of Housing and
8    Urban Development.
9        (12) Costs relating to the development of urban
10    agricultural areas under Division 15.2 of the Illinois
11    Municipal Code.
12    Unless explicitly stated herein the cost of construction of
13new privately-owned buildings shall not be an eligible
14redevelopment project cost.
15    After November 1, 1999 (the effective date of Public Act
1691-478), none of the redevelopment project costs enumerated in
17this subsection shall be eligible redevelopment project costs
18if those costs would provide direct financial support to a
19retail entity initiating operations in the redevelopment
20project area while terminating operations at another Illinois
21location within 10 miles of the redevelopment project area but
22outside the boundaries of the redevelopment project area
23municipality. For purposes of this paragraph, termination
24means a closing of a retail operation that is directly related
25to the opening of the same operation or like retail entity
26owned or operated by more than 50% of the original ownership in

 

 

HB2701- 51 -LRB101 10353 AWJ 55459 b

1a redevelopment project area, but it does not mean closing an
2operation for reasons beyond the control of the retail entity,
3as documented by the retail entity, subject to a reasonable
4finding by the municipality that the current location contained
5inadequate space, had become economically obsolete, or was no
6longer a viable location for the retailer or serviceman.
7    No cost shall be a redevelopment project cost in a
8redevelopment project area if used to demolish, remove, or
9substantially modify a historic resource, after August 26, 2008
10(the effective date of Public Act 95-934), unless no prudent
11and feasible alternative exists. "Historic resource" for the
12purpose of this paragraph means (i) a place or structure that
13is included or eligible for inclusion on the National Register
14of Historic Places or (ii) a contributing structure in a
15district on the National Register of Historic Places. This
16paragraph does not apply to a place or structure for which
17demolition, removal, or modification is subject to review by
18the preservation agency of a Certified Local Government
19designated as such by the National Park Service of the United
20States Department of the Interior.
21    If a special service area has been established pursuant to
22the Special Service Area Tax Act or Special Service Area Tax
23Law, then any tax increment revenues derived from the tax
24imposed pursuant to the Special Service Area Tax Act or Special
25Service Area Tax Law may be used within the redevelopment
26project area for the purposes permitted by that Act or Law as

 

 

HB2701- 52 -LRB101 10353 AWJ 55459 b

1well as the purposes permitted by this Act.
2    (q-1) For redevelopment project areas created pursuant to
3subsection (p-1), redevelopment project costs are limited to
4those costs in paragraph (q) that are related to the existing
5or proposed Regional Transportation Authority Suburban Transit
6Access Route (STAR Line) station.
7    (q-2) For a redevelopment project area located within a
8transit facility improvement area established pursuant to
9Section 11-74.4-3.3, redevelopment project costs means those
10costs described in subsection (q) that are related to the
11construction, reconstruction, rehabilitation, remodeling, or
12repair of any existing or proposed transit facility.
13    (r) "State Sales Tax Boundary" means the redevelopment
14project area or the amended redevelopment project area
15boundaries which are determined pursuant to subsection (9) of
16Section 11-74.4-8a of this Act. The Department of Revenue shall
17certify pursuant to subsection (9) of Section 11-74.4-8a the
18appropriate boundaries eligible for the determination of State
19Sales Tax Increment.
20    (s) "State Sales Tax Increment" means an amount equal to
21the increase in the aggregate amount of taxes paid by retailers
22and servicemen, other than retailers and servicemen subject to
23the Public Utilities Act, on transactions at places of business
24located within a State Sales Tax Boundary pursuant to the
25Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
26Tax Act, and the Service Occupation Tax Act, except such

 

 

HB2701- 53 -LRB101 10353 AWJ 55459 b

1portion of such increase that is paid into the State and Local
2Sales Tax Reform Fund, the Local Government Distributive Fund,
3the Local Government Tax Fund and the County and Mass Transit
4District Fund, for as long as State participation exists, over
5and above the Initial Sales Tax Amounts, Adjusted Initial Sales
6Tax Amounts or the Revised Initial Sales Tax Amounts for such
7taxes as certified by the Department of Revenue and paid under
8those Acts by retailers and servicemen on transactions at
9places of business located within the State Sales Tax Boundary
10during the base year which shall be the calendar year
11immediately prior to the year in which the municipality adopted
12tax increment allocation financing, less 3.0% of such amounts
13generated under the Retailers' Occupation Tax Act, Use Tax Act
14and Service Use Tax Act and the Service Occupation Tax Act,
15which sum shall be appropriated to the Department of Revenue to
16cover its costs of administering and enforcing this Section.
17For purposes of computing the aggregate amount of such taxes
18for base years occurring prior to 1985, the Department of
19Revenue shall compute the Initial Sales Tax Amount for such
20taxes and deduct therefrom an amount equal to 4% of the
21aggregate amount of taxes per year for each year the base year
22is prior to 1985, but not to exceed a total deduction of 12%.
23The amount so determined shall be known as the "Adjusted
24Initial Sales Tax Amount". For purposes of determining the
25State Sales Tax Increment the Department of Revenue shall for
26each period subtract from the tax amounts received from

 

 

HB2701- 54 -LRB101 10353 AWJ 55459 b

1retailers and servicemen on transactions located in the State
2Sales Tax Boundary, the certified Initial Sales Tax Amounts,
3Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
4Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
5the Service Use Tax Act and the Service Occupation Tax Act. For
6the State Fiscal Year 1989 this calculation shall be made by
7utilizing the calendar year 1987 to determine the tax amounts
8received. For the State Fiscal Year 1990, this calculation
9shall be made by utilizing the period from January 1, 1988,
10until September 30, 1988, to determine the tax amounts received
11from retailers and servicemen, which shall have deducted
12therefrom nine-twelfths of the certified Initial Sales Tax
13Amounts, Adjusted Initial Sales Tax Amounts or the Revised
14Initial Sales Tax Amounts as appropriate. For the State Fiscal
15Year 1991, this calculation shall be made by utilizing the
16period from October 1, 1988, until June 30, 1989, to determine
17the tax amounts received from retailers and servicemen, which
18shall have deducted therefrom nine-twelfths of the certified
19Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
20Amounts or the Revised Initial Sales Tax Amounts as
21appropriate. For every State Fiscal Year thereafter, the
22applicable period shall be the 12 months beginning July 1 and
23ending on June 30, to determine the tax amounts received which
24shall have deducted therefrom the certified Initial Sales Tax
25Amounts, Adjusted Initial Sales Tax Amounts or the Revised
26Initial Sales Tax Amounts. Municipalities intending to receive

 

 

HB2701- 55 -LRB101 10353 AWJ 55459 b

1a distribution of State Sales Tax Increment must report a list
2of retailers to the Department of Revenue by October 31, 1988
3and by July 31, of each year thereafter.
4    (t) "Taxing districts" means counties, townships, cities
5and incorporated towns and villages, school, road, park,
6sanitary, mosquito abatement, forest preserve, public health,
7fire protection, river conservancy, tuberculosis sanitarium
8and any other municipal corporations or districts with the
9power to levy taxes.
10    (u) "Taxing districts' capital costs" means those costs of
11taxing districts for capital improvements that are found by the
12municipal corporate authorities to be necessary and directly
13result from the redevelopment project.
14    (v) As used in subsection (a) of Section 11-74.4-3 of this
15Act, "vacant land" means any parcel or combination of parcels
16of real property without industrial, commercial, and
17residential buildings which has not been used for commercial
18agricultural purposes within 5 years prior to the designation
19of the redevelopment project area, unless the parcel is
20included in an industrial park conservation area or the parcel
21has been subdivided; provided that if the parcel was part of a
22larger tract that has been divided into 3 or more smaller
23tracts that were accepted for recording during the period from
241950 to 1990, then the parcel shall be deemed to have been
25subdivided, and all proceedings and actions of the municipality
26taken in that connection with respect to any previously

 

 

HB2701- 56 -LRB101 10353 AWJ 55459 b

1approved or designated redevelopment project area or amended
2redevelopment project area are hereby validated and hereby
3declared to be legally sufficient for all purposes of this Act.
4For purposes of this Section and only for land subject to the
5subdivision requirements of the Plat Act, land is subdivided
6when the original plat of the proposed Redevelopment Project
7Area or relevant portion thereof has been properly certified,
8acknowledged, approved, and recorded or filed in accordance
9with the Plat Act and a preliminary plat, if any, for any
10subsequent phases of the proposed Redevelopment Project Area or
11relevant portion thereof has been properly approved and filed
12in accordance with the applicable ordinance of the
13municipality.
14    (w) "Annual Total Increment" means the sum of each
15municipality's annual Net Sales Tax Increment and each
16municipality's annual Net Utility Tax Increment. The ratio of
17the Annual Total Increment of each municipality to the Annual
18Total Increment for all municipalities, as most recently
19calculated by the Department, shall determine the proportional
20shares of the Illinois Tax Increment Fund to be distributed to
21each municipality.
22    (x) "LEED certified" means any certification level of
23construction elements by a qualified Leadership in Energy and
24Environmental Design Accredited Professional as determined by
25the U.S. Green Building Council.
26    (y) "Green Globes certified" means any certification level

 

 

HB2701- 57 -LRB101 10353 AWJ 55459 b

1of construction elements by a qualified Green Globes
2Professional as determined by the Green Building Initiative.
3(Source: P.A. 99-792, eff. 8-12-16; 100-201, eff. 8-18-17;
4100-465, eff. 8-31-17; 100-1133, eff. 1-1-19.)
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.